Feature Article
Becoming “Lean” and “Green”
Now, more than ever, companies must become lean and green in order to survive and thrive. Being green is about reducing the carbon footprint of the company. At ASIL, we believe reducing the carbon footprint goes well beyond simply the reduction of electrical energy consumption into areas such as the physical energy required to design, develop, market, produce, and distribute products the company chooses to sell.
To understand the broader footprint measure a company must understand factors such as the number of people involved, physical aspects such as office buildings, warehousing and distribution facilities, transportation networks and fuel consumption, technology and systems, asset turnover and process wait times, and waste from physical damage, obsolescence and inadequate measurement and management activities. To reduce the carbon footprint we believe a company must look at the entire value chain, and the underlying processes, to investigate areas where there exist new opportunities to accomplish their mission in a leaner and greener fashion.
One area to consider would be a company’s reverse logistics supply chain. A recent article in Reverse Logistics Magazine™ suggests a typical company loses 30% profitability by maintaining ineffective reverse logistics supply chain programs. The article attributes this loss to little automation of the reverse supply chain processes, poor management of asset turnover, and inadequate warehouse management practices. In other words, by allowing the use of inefficient and ineffective processes, the company wastes energy in producing profits. The result is a larger carbon footprint then required in the best-case state.
To remedy the situation, a company should consider mapping the entire enterprise value chain showing the resources allocated to each critical touch-point of the chain. These resources should be identified in terms of cost, time, and whether the resource allocation is critical to the ultimate customer value proposition. Each major process activity should be evaluated as to whether a specialist is available in the marketplace that could deliver the service at less cost, time or with greater quality. Considerations should be developed for sourcing those areas identified to be non-core competencies to providers who perform the service as core a competency. By using experts, who have already made investments in valuable infrastructure, technologies, and processes, you leverage their carbon footprint investments to maximize your company’s profitability. By leveraging the power of community, you and your customers win by your being leaner and greener!
The staff at ASIL has experience in process analysis, process mapping and core-competency assessments. We are well-versed in a variety of analytical techniques to apply in gaining an understanding of the opportunities from alternative value chain designs. Let us help you achieve new areas of profitability and success in this ever changing economy.
Contributed by Warren White
November 2008 Spotlight
Survival of the Fittest
Every year over a million businesses are started with the hopes of creating the new widget or service or whatever that will take everyone by storm. Some aspirations are modest – to be your own boss and call the shots. Others are filled with visions of market domination and industry leadership. Each has their own way, striving to make a difference in a competitive and demanding consumer world.
The sad reality is that about 80% of these new ventures (small and large) will fail before the end of their first year. It can occur because of cash flow challenges, economic climate shifts, new competitors entering the market, poor performance, and more. If that statistic isn’t enough to scare first timers, consider what typically happens through years two and three.
The fortunate survivors remaining after year one will face another reduction by 30% in year two for similar reasons that they may have side stepped in year one. Subsequently, in year three another 20% will drop out and dry up. So out of 100 new starts, less than 6 will be around at the end of year three.
Starting and growing a business takes much more than a good idea or a vision of success. It takes a healthy dose of business skills, resources, and a commitment to excellence. An additional ingredient is luck. Since luck is an uncontrollable variable with no guarantees, success actually begins with doing what you do well. Delivering value to the consumer and keeping them satisfied is tantamount in sustaining any business model.
While many companies that fail were short on resources or other tangible items, said shortfall could have been seen or mitigated by having a business plan. No matter the size or the offering or the field in which you chose to participate, the surest way to ending the game early is absence of a plan. Setting the strategies is the starting point for your future success.
While it is a tough and demanding road to success, after your third year the likelihood for survival increases. That doesn’t mean that you will thrive, rather you will have survived. Your plan will need to be renewed and refreshed as the climate and market changes. If you are uncertain where to begin, let us unlock the power of your future. From all of us at ASIL, Inc. thanks for five wonderful years of learning, contributing, and making a difference.
Contributed by Peter Pazmany
Industry Trends
Moving Forward in Reverse
The business of logistics has its origins rooted in the armed forces: where success was highly dependent on the constant resupply of arms, equipment and provisions. The mobilization of these troops and their supplies defined the process of a Forward Logistics operation, unless you were on the losing side and needed to reverse your maneuver. Armies didn’t spend much time focused on the process of Reverse Logistics as the primary goal was one of moving forward toward victory.
The same can be said for the 20th century approach to logistics. Large product manufacturers focused entirely on optimizing Forward Logistics, studying how best to push products into the marketplace as efficiently as possible. Because manufacturers believed in the product, they did not expect to see many of them return, so Reverse Logistics became the stepchild of many business logistics operations.
For the last decade, however, companies have started to realize that Reverse Logistics is an important part of the logistical chain. Not only can a focus in Reverse Logistics yield cost savings for the business but it can also deliver tremendous added value to the customer’s overall experience of a brand or company. Improvements in Reverse Logistics processing can be a profitable business strategy.
Today’s customers are very demanding. With the help of the Internet, customers know what the market has to offer in terms of price and product features. While price plays an important role in what product a customer is likely to buy, the customer will also be equally observant of the product’s brand image. It needs to suit their identity and anticipation. A product’s brand image, carefully constructed with the help of many marketing dollars, should therefore match with the customer’s expectations. In this light, Reverse Logistics is a vital component of cost and profits.
Is your Reverse Logistics strategy stuck in the stepchild mode? Architecting an effective Reverse Logistics strategy can be daunting. The professionals at ASIL, Inc. have a broad range of experience in designing, implementing and managing Reverse Logistics strategies. Give them a call!
Adapted from Reverse Logistics Magazine
Contributed by Michael Singleton
Our Software Products
Click on the links below to view ASIL, Inc.'s MAX Partnering® self paced software demonstrations:
Self Assessment Sample Questionnaire - This demo will enable you to respond to a small sample of self assessment questions focused on change management and create a Heat Map of your responses to see areas that may need attention. The Driving Complex Change® methodology addresses the six areas of Direction, Ability, Incentive, Resources, Structure, and Action that can impact your effectiveness of change management.
|
|
|
|
|
Change Happens
Are you ready?
Click here to read the first four chapters of Driving Complex Change.
After you've read Driving Complex Change chapters one through four, click here to generate your own Change Readiness heat map based on the Driving Complex Change® methodology.
|
|
|
|
Supply Chain Headaches?
ASIL Can Help!
Place your greatest challenge on the professionals at ASIL, Inc. We will quickly assess the situation, develop a solution and deliver results. Contact ASIL to get the support you need to ensure success!
Click the link below to contact us.
Contact ASIL |
|
|
|
Partner
How To Become An ASIL Partner
Can ASIL help you to increase the value proposition of your customer offerings? ASIL partners with leading companies that offer complimentary services to provide customers with a complete solution. Join the growing network of ASIL Partners and gain a competitive advantage today!
Click HERE to find out more about partnering with ASIL, Inc.
|
|
|
|
|
|
Key Terms
Value Chain: A sequence of processes that creates a product or service that is of value to a Customer. Each step of the sequence builds on the previous steps and contributes to the overall product or service.
Supply Chain: The Activities in a Value Chain carried out by Suppliers. A Supply Chain typically involves multiple Suppliers, each adding value to the product or Service.
Reverse Logistics: Is a supply chain dedicated to the reverse flow of products and materials for returns, repair, remanufacture, and/or recycling.
Source – all.business.com
|
|
ASIL, Inc.
2901 Tasman Dr., Suite 117
Santa Clara, CA 95054
Phone : (408) 980-9904
Toll Free : (888) 878-2745
email : sales@asil-inc.com
www.asil-inc.com
|
|
|
